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aid effectiveness

Can business help finance the Post-2015 Agenda? Yes, But…

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A participant at the Latin America regional consultation on 'Engaging with the Private Sector' in Cartagena, Colombia. Photo credit: (AECID)

Diplomats and their governments are in the middle of a huge exercise to update the world's development agenda. Attention has now started to shift from the ‘what' of the agenda to the ‘how' – policy choices, capacities, institutions, and technology to name but a few. Yet where will the hard cash come from to fund these lofty aspirations? Some of the poorest and least developed countries will be looking for a clear commitment from richer countries that they will meet previous commitments on official development assistance (ODA), including the international benchmark of 0.7% of GNI. But the economies of many rich countries are still struggling, and their governments are finding it difficult to justify to domestic taxpayers that their money is being spent abroad rather than at home. At the other end of the spectrum, some governments have emphasized that the private sector will step in and shoulder the burden of financing the new goals and targets. The discussion on the validity or means of this claim has not been very deep. More cynically, some have suggested that focusing on the private sector's role is a deliberate tactic to steer the debate away from aid commitments. But this critical question remains... Read more

The open way

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open.undp.org presents detailed information on the UNDP’s 6,000+ development projects in 177 countries and territories worldwide

Governments and public institutions such as the United Nations are trusted with huge amounts of public funds.  We have an obligation to work in a transparent way to show that what we are doing is what we should be doing. The benefits of being transparent, or “working in the open”, go beyond curbing corruption.  Transparency sets the foundation for responsive, engaged organizations. And real transparency allows for the public to have a say in the way work is being done and to take advantage of the “wisdom of the crowd.”  Transparency improves efficiency, builds trust and sparks innovation. The International Aid Transparency Initiative is creating openness in the $200 billion area of international development by giving poor countries the information they need to better manage foreign assistance, and donor governments – and their taxpayers – a better understanding of where their money goes.  It is an “open data” effort with global standards for billions in public funds that UNDP has helped launch. At UNDP, we’ve worked to champion this effort with partner countries and other UN agencies, but we’ve also worked to deliver what we ask of others.  We’ve tried hard to make our internal systems more understandable and ensure the... Read more

How well is the rich world supporting development?

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Miners in the Democratic Republic of Congo. The mining sector is characterized by conditions of extreme danger, without any security and health framework with negative consequences for the environment. Photo: Benoit Almeras-Martino/UNDP DRC

We all know that many factors influence a country’s progress on poverty reduction and development. Policies and institutions at the domestic level are probably the most important driver. But it’s also true that the policies and actions of other countries – and especially rich and powerful nations – also influence the developing world’s development prospects. In this spirit, MDG 8 was elaborated. This MDG differs from all the others; it measures the developed world’s efforts to do things like increase development aid, cancel the debt of the poorest countries, make international trade fairer and provide access to affordable medicines. These measures, many argue, are just as important as the steps developing country governments can take at home to ‘improve their lot’. Every year, the UN monitors progress on how well the rich world is doing and launched its latest ‘update’ report recently. UNDP partners in this annual monitoring effort. So what’s the verdict? Is the rich world living up to its MDG commitments? On development aid (ODA), the report notes that, despite an increase last year, ODA still was US$180 billion short of the commitment. It’s also heavily concentrated in a few countries; in 2013, just 10 countries absorbed over 34%... Read more

Crowdfunding for development: fad or future?

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Children picking olives at Ostrog Primary School which was made energy independent, through a crowfunding campaign supported by UNDP and the Kaštela Energy Cooperative. Photo: Marina Kelava/UNDP Croatia

Steady growth and, for now, no end of the trend in sight: the crowdfunding market keeps expanding across the globe. Crowdfunding describes the practice of securing funding for a specific project or business venture by a dispersed group of people with some shared interests, “the crowd”. Most crowdfunding initiatives are dependent on whether they raise the targeted amount from the crowd. If the funding goal is not met, the project will not take off. It thus differs to charitable donations which usually support the respective organization’s general mission without knowing exactly how the money will be spent. UNDP has been experimenting with philanthropic crowdfunding and has had some early successes. For example, colleagues in Croatia successfully raised $10,000 for an energy-independent school in Croatia. The sum might be fairly small but the experience showed: crowdfunding can create a buzz for development work and social causes as the unwritten rules of crowdfunding require development organizations to communicate constantly and in a non-technical jargon what concretely was achieved. UNDP has also had some experience ‘failing’ with crowdfunding initiatives. As the saying goes: “Failure is only the opportunity to begin again more intelligently”. Based on lessons thus far, we developed guidance document for UNDP... Read more

Financing Post-2015: A quick run-down of the expert committee’s report

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Drip irrigation system introduced in the farmlands of Akmola region in Kazakhstan. Photo: UNDP in Kazakhstan

The UN’s inter-governmental committee of experts on sustainable development financing met for the last time this month to put the final touches to their much anticipated report on how the world should finance the post-2015 Sustainable Development Goals – or SDGs. I’ve had the opportunity to attend many of the committee’s sessions, and they’ve had a mammoth task. So what have they come up with? You can read the full report here, but below is a quick heads-up. The range of issues they’ve had to cover is massive: from assessing how much cash is needed to finance sustainable development to thinking about where the cash could come from and where these funds should be directed. The report draws up a ‘menu of options’ for the financing of sustainable development. This allows policymakers in different countries to make choices as to what policies and financial instruments are most suited to them. That makes perfect sense of course; the strategy that will be best for a climate-vulnerable small island state such as the Maldives won’t necessarily be the same for a larger resource-rich country such as Kazakhstan. On the other hand, it could also lead governments to ‘cherry-pick’ among the ideas presented, and... Read more

Creating and sustaining ethical organizational culture

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When we speak of organizational culture, we are referring to the way people behave in the workplace, how they go about doing their work and the values that they demonstrate through their actions and decision-making. Organizational culture passes down from long serving staff to new hires and becomes embedded in how the organization operates. Thus, organizational culture is influenced and impacted not just by written regulations, rules and policies, but also by the unwritten code of ‘how we really do things around here.’ So, the organizational culture can be aligned with its stated values and policies (ethical), or it can be contradictory of those written statements (unethical). Very often, employees will do what they know is rewarded and will avoid doing what they know will be punished. To create and sustain an ethical organizational culture needs constant communication about the ethical values of the organization and ensuring that the behaviors of all leaders and staff members are aligned with those values. This requires going beyond just the written rules to reaching for the highest aspirational behavior. It means living the principles underpinning the values, even when there is no rule or where the written rule is unclear. An ethical organizational culture... Read more

Development aid: where to next?

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The first High-Level Meeting of the Global Partnership for Effective Development Cooperation launched 38 new initiatives by government, business, private foundations and civil society in Mexico last month. Photo: AGCED Mexico

Last month some 1500 people from over 130 countries gathered in Mexico City for the latest international jamboree on development aid. The ‘Global Partnership for Effective Development Cooperation’, an OECD/UNDP-led effort  to improve aid effectiveness by encouraging better partnerships between aid donors and aid recipients, had to confront some really tough questions. Do some countries still need development aid? Does aid really work that well? And what is ‘aid’ anyway? Over the last decade, the developing world has dominated global economic growth. There are now 103 middle-income countries and the number (happily) continues to rise. Although much of the attention has been focused on the rapid economic advances made by the ‘big beasts’ of the developing world —Brazil, China and India— others are also doing well; Sub-Saharan Africa has grown at, on average, 5-6% annually over the last decade. Some developing countries have become major donors themselves, such as Mexico, Turkey, Kazakhstan and South Africa. Arab donors have also become more prominent and last month the UAE posted the highest aid levels of all donor countries as a percentage of gross national income (at 1.25%). All well and good, then?  Perhaps, but it’s left many ‘old’ donors confused – will taxpayers... Read more

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